David Cameron has officially put the UK into the slow-lane of Europe with the other 26 countries all in the fast lane – including not just the 17 members of the Eurozone, but also those other countries that do not use the Euro. The excuse for doing so is to protect the banking industry – specifically the City of London from a transaction tax.

There are of course the Euro-sceptics whose mindset is stuck in the 19th century who are celebrating and suggesting that we should go further and have a referendum on leaving the EU and ‘going it alone’. Fortunately even the majority of Tories (whose instincts lie in that direction) realise this is a step too far and realise that whatever minor annoyances there are, the membership of Europe is a good thing for us.

To exaggerate the scale of things somewhat, Britain is a country playing in the playground of 900-kilo behemoths – China, the USA, and right next door to us (and we’re effectively part of it … sometimes) the giant of Europe. And it is a giant, although people often underestimate the power of Europe – all those funny Europeans, surely they can’t add up to much can they ? Actually they do – the GDP of the European Union as a whole is larger than any country in the world including the USA and China; admittedly only marginally larger than the GDP of the USA (a trifling 2 trillion dollars larger). This is because we usually rank countries in order of GDP, but miss larger blocks.

It is essentially an “accident” of history that Europe has remained a grouping of 26 independent countries whereas China became a huge land empire, and the USA became a federal union of “nation states”. The accident is of course a complex series of events throughout European history that is beyond the scope of this blog entry!

This could all be an example of short-term thinking – whilst staying out may protect the financial industry (although it is interesting to note that the Financial Times wasn’t entirely positive about this), it may well harm Britain’s prospects in the longer term. And increased regulation and taxation of the banking industry may be what the leaders of banking oppose, but it could well be that people in the UK actually would quite agree with it.

By staying out, we will have less influence over the core of Europe with less say on how Europe progresses. Whilst some people may welcome this, it does seem unwise to risk losing any amount of influence over what is our largest trading partner. And losing any influence with an organisation to which we belong seems unwise.

For some strange reason – perhaps because we seem to like bad news better than good news – the news about the European Union always seems to be bad rather than good. Some of this is merely down to how it is presented – we always hear about draconian regulation of business from Europe, but rarely stop to think that perhaps the regulation was called for by consumers because of abuses by businesses (such as international roaming charges by mobile phone operators), or that the European regulation merely harmonises regulation across Europe – would that business rather have 26 sets of regulations to work with, or 1 ?

There is also a bizarre myth that the European Union is less democratic than the national governments. That all EU power is controlled by unelected European Commissioners. That is a myth put about by politicians who are in danger of losing their cushy jobs if the people eventually device that with the EU parliament in place, there is no more need for expensive national parliaments. In fact, it is entirely possible that the EU is more democratic than national governments.

We often take the earlier accomplishments of the EU for granted – the ability to travel across Europe without visas at every turn. Who has not sailed through the fast lane at airports pitying those from outside the EU who are stuck in the slow lane ? And what about peace across Europe ?

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